The Invest Europe guidance on climate change has been developed for private equity investors and provides practical, entry-level, support to actors and stakeholders in the European market seeking to integrate climate change considerations in their investment processes.
It includes practical tools and guidelines for identifying climate change-related risks and opportunities in private equity portfolio companies, complemented with practical business cases. Private equity fund investors, fund managers and their portfolio companies can contribute to this shared outcome and to the EU’s climate objectives in a number of ways which are summarised in this guide. This is an overview and is not exhaustive. It aims to serve as a guide with a step-by-step approach and idea generator on where to focus efforts for the participants in the European private equity market.
Through this guide we aim to help both GPs and LPs in their climate risk assessment and management activities. In order to be most useful in this context, the approach of the guide will follow the phases of the investment process. We set out a high-level framework to scope, identify, assess, manage, and monitor climate-related risks, and how to identify the opportunities and be best positioned when transitioning to a low-carbon economy. Over time, we seek to add new tools and recommendations to the guide. This introductory guide also will be followed by intermediate and advanced level guidance, aimed at those who are ready to deepen their understanding and approach.